← Glossary
ATR
ATR averages the true range over a lookback period, giving a single number that scales with how much an instrument typically moves. It's the volatility measure most stop and position-sizing rules in this product use, since it adapts to the instrument rather than assuming every ticker moves the same amount.
ATR(n) = EMA(TrueRange, n)This explains what atr measures. It isn't investment advice — see the disclaimer.